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The Obama administration just implemented a new regulatory change that has sent the entire firearms industry into a tailspin overnight.

A key ingredient necessary for making gunpowder has been re-classified as a high explosive, making it illegal for any company within the industry to transport or store it as they have for decades.

It all stems from how the ATF regulates a chemical compound known as nitrocellulose. For decades, the firearm industry has been allowed to store and transport wetted nitrocellulose without having to treat it as a high explosive. Manufacturers deliberately mix the chemical compound with water to make it less volatile.

Overnight, the ATF just completely changed its regulations, turning everyone in the ammunition industry into felons if they do business the way they have for decades.

The entire industry is now at a standstill. Without nitrocellulose, you can’t make smokeless gunpowder. Without smokeless powder, there’s no ammunition.

This is the real deal. If this regulation stays in place, it will take months for the industry to recover and send ammunition prices through the roof!

====================================================== However, the ATF Newsletter indicates the following:

https://www.atf.gov/file/109341/download

August 31, 2016 Nitrocellulose - Update ATF’s June 2016 Explosives Industry Newsletter included a brief discussion of Nitrocellulose, and attempted to clarify the circumstances under which wetted Nitrocellulose is considered a high explosive under 27 CFR, Part 555. As with all explosives, ATF’s focus is on the potential public safety risks associated with materials that can be misused or diverted to unlawful purposes. Subsequent contact from industry members who import, transport, store or employ wetted Nitrocellulose in the production of ammunition, however, has brought to our attention issues that were not fully addressed in the Newsletter and require further consultation and consideration with the industry. Accordingly, ATF has and will conduct further industry outreach concerning wetted Nitrocellulose. In the interim, previously authorized industry practices concerning wetted Nitrocellulose will not be affected.